IT dept to access to emails, social media accounts for tax investigations

The Income Tax Department will soon have the legal authority to scrutinize social media profiles, emails, bank accounts, online investments, and trading accounts as part of tax investigations, according to an Economic Times report.

Under the proposed Income Tax Bill, tax officials will be empowered to investigate individuals suspected of tax evasion or concealing undeclared assets, including cash, gold, jewelry, and other valuables.

The move aims to modernize tax enforcement and curb financial fraud, the report added. Currently, Section 132 of the Income Tax Act, 1961 allows officials to conduct searches and seizures if credible information suggests a person is hiding income, assets, or financial records to evade taxes.

Until now, tax authorities could forcibly open doors, safes, or lockers to access hidden financial records. However, starting April 1, 2026, this power will extend to digital platforms. Officials will be allowed to access computer systems, emails, and online accounts if they suspect tax-related information is being concealed there.